As Fiji seeks to diversify its economy beyond tourism, developments such as Google's data operations centre in Natadola, Fiji Water's plans to establish a citrus industry in Vanua Levu and Aitken Spence's move into commercial agriculture are being seen as major opportunities for growth.
Government MP Manoa Kamikamica says Fiji has become overly dependent on tourism.
While speaking on a State of the Fijian Economy panel discussion, Kamikamica says we have also developed somewhat of a consumer-based economy that does not really lend itself to productivity beyond consumption and has driven many people into urban areas.
He says as a result, Fiji has been looking at ways to rebuild the Fijian economy.
Kamikamica says as work on Google's data centre in Natadola has begun, about 10 businesses have onboarded in the Business Process Outsourcing sector, which generates about $300 million in foreign exchange and employs about 8,000 workers.
He says looking ahead, the ICT sector will continue to grow with more BPO and cybersecurity firms basing themselves in Fiji.
While speaking on opportunities in the commercial agriculture sector, Kamikamica says Fiji Water has about 70,000 plants of citrus sitting in Vanua Levu in quarantine, ready to be deployed for experimental agriculture.
The former Deputy Prime Minister and Minister for Trade says he is hoping that they can develop a serious citrus industry in Fiji, and then we can then roll that out and allow the rural communities to start planting.
He further says that Aitken Spence, a major agricultural company in Sri Lanka, is willing to come to Fiji to do commercial agriculture.
Kamikamica says they have already identified land in Nadi, and will be moving ahead.
He says an Israeli company is set to invest in Fiji, while discussions with two other major companies are in their final stages.
He says the next step is to connect private sector investors with rural communities and cooperatives, noting that successful partnership models already exist through companies such as British American Tobacco, Crest Chicken and Rooster Poultry.
While speaking on balancing economic growth, fiscal responsibility, and social protection, Kamikamica says there has been a litany of overspending and abuse in past governments where for instance, $400 million was spent on Fiji's film rebate programme without being accounted for in the national budget, creating a significant fiscal gap.
He further says the government is trying to be disciplined in its spending while managing key economic indicators such as the debt-to-GDP ratio, the balance between operational and capital expenditure, revenue collection, and whether the economy is being overtaxed.
Kamikamica also admits that they need to closely look at is the size of government.
He says one of the government's key policy reforms was the repeal of Media Industry Development Act, which he believes has significantly changed the country's dynamics by allowing people to speak more freely and enabling greater interaction and openness from the private sector.
The former Deputy Prime Minister says the level of discussion and debate seen on social media today is a result of that change.
He says the mahogany industry, which currently brings in about $20 million a year, also has significant potential, saying it has remained largely untapped despite being a billion-dollar industry.
Kamikamica says the recently passed Mahogany Bill could help unlock that potential and create a major industry within the next few years.
He further says Fiji should consider establishing a sovereign wealth fund to help cushion the country against future economic shocks.
Kamikami notes that Fiji has faced challenges such as COVID-19 and the conflict in the Middle East, and says a sovereign wealth fund could provide financial security during similar crises in the future.
On the sugar industry, he says too much money is being spent on subsidies compared to the returns being generated and believes the industry needs restructuring.
He says many farmers have already started diversifying into other crops and that government support through the right policy settings is needed to help drive further change.
He has also highlighted the potential of the iTaukei economy, saying Fiji is missing out on significant opportunities.
Drawing comparisons with New Zealand's Māori economy, which contributes about $120 billion to that country's economy, he says reforms and better utilisation of resources such as mahogany could increase incomes for landowners and create new economic opportunities.
INSERT: Kamikamica on pipeline 11 jun
